SC&H Capital, a leading investment banking and advisory firm, is pleased to announce that its client, Zurvita, Inc. (“Zurvita” or the “Company”), has been acquired by Zinzino AB (“Zinzino”), a Sweden-based global seller of dietary supplements, skin care, and lifestyle products.
Zurvita is a health and wellness company that utilizes a direct selling model through over 8,000 consultants and has achieved annual revenues of over $100 million. The Company’s scale and product portfolio drew interest from Zinzino, who made an unsolicited offer to acquire the business. After several months of diligence, the deal fell apart due to concerns surrounding Zurvita’s liabilities, including pending shareholder litigation. SC&H Capital was retained to run a formal process that would culminate with a bankruptcy sale, free and clear of any previous liens or liabilities.
SC&H Capital launched a worldwide marketing process to solicit bids for the Company. Concurrently, SC&H Capital negotiated a new offer from Zinzino that would allow them to serve as the stalking horse bidder and DIP lender for the planned bankruptcy filing. A competing bid from a Mexican company was obtained but deemed less favorable and thus not selected as the stalking horse bidder.
With the stalking horse offer in hand, SC&H Capital went back to the dozens of groups that signed NDAs to see if there was interest in serving as an overbidder. No one was willing to pay more than the stalking horse, and the transaction closed less than 60 days after the filing. SC&H Capital also served as the financial advisor in this case, creating and maintaining the DIP budget and negotiating with critical vendors and creditors to ensure going-concern value was maintained through the bankruptcy.
